MITIGATING RISK MITIGATING RISK IN GIFT CARD SALES IN GIFT CARD - - PowerPoint PPT Presentation
MITIGATING RISK MITIGATING RISK IN GIFT CARD SALES IN GIFT CARD SALES March 2019 MEET RISKIFIED MEET RISKIFIED Were an AI platform helping optimize Were an AI platform helping optimize the online shopping journey the online shopping
March 2019
Over 330 Over 330 employees employees $64 million $64 million in funding in funding
Login Login Checkout Checkout Authorization Authorization Fraud Review Fraud Review Post Checkout Post Checkout
194% CAGR 194% CAGR (2014 (2014-2018) 2018)
MEET RISKIFIED MEET RISKIFIED
We’re an AI platform helping optimize We’re an AI platform helping optimize the online shopping journey the online shopping journey
global gift card market in 2017
10% 10%
YoY growth
$510B $510B
expected gift card market by 2023
65% 65%
more than 38% of the card’s value
$320B $320B
THE OPPORTUNITY THE OPPORTUNITY
Gift cards are one of the top items on the buying list of shoppers during holiday sales
Holidays digital good sales Holidays digital good sales
THE BUYERS THE BUYERS
As an alternative payment method As an alternative payment method To send money, buy goods that won’t appear on credit card bill, etc. As a gift As a gift ~ 60% of consumers like receiving gift cards To commit fraud To commit fraud
3 different purposes 3 different purposes
FRAUD FRAUD CHALLENGES CHALLENGES
Even when gift cards represent only 2% of sales volume, they can account for up to 1/3 of chargebacks
High value, no weight High value, no weight
TYPES OF FRAUD TYPES OF FRAUD
Sophisticated fraud Sophisticated fraud ATO, fraud rings, bots Common fraud Common fraud Stolen credentials, the mixed cart scheme Chargeback abuse Chargeback abuse Non-premeditated, liar buyer
3 categories of CNP fraud 3 categories of CNP fraud
THE SELLERS THE SELLERS
3 types of players 3 types of players
Gift card Gift card-only merchants
Retailers Retailers Sell gift cards and other goods Peer to peer marketplaces Peer to peer marketplaces Second-hand gift cards marketplace
Risk Differs for Risk Differs for Different Types of Different Types of Gift Cards Gift Cards
Open Loop vs Closed Loop Open Loop vs Closed Loop
Closed Closed-loop loop fraud rate Digital Digital x 1.5 x 1.5 x 8 x 8 Open Open-loop loop fraud rate Plastic Plastic
PROTECT YOURSELF PROTECT YOURSELF
Devise specific strategy for gift cards Remember that proxy detection is key Track behaviour and anomalies Account protection tools Link and tag
Collect evidence and dispute chargebacks
APPROVE MORE ORDERS APPROVE MORE ORDERS
Don’t rely too heavily on AVS, or outdated fraud detection systems Link the email to the customer’s name and location Identify returning customers Look for personal clues: promo codes, photos, messages, etc.
CLIENTS CLIENTS
Thank you for your time
For any questions please contact: sophia.miller@riskified.com +972 539 229539 For additional information, visit:
www.riskified.com